El Paso Corp. has completed a previously announced agreement to sell its Eagle Point refinery to Sunoco Inc. for $111 million, plus fair market value for related working inventories when the deal closes in mid-January. When the transaction was announced last April, El Paso agreed to sell the refinery and its related assets for $130 million.

Subsidiary Coastal Eagle Point Oil Co. owns the assets, which include a refinery located in Westville, NJ, across the Delaware River from Sunoco’s Philadelphia Refining Complex. Sunoco also signed an option to purchase El Paso’s share of the Harbor Pipeline, which connects the refinery to regional distribution systems.

Eagle Point, which was acquired when El Paso merged with The Coastal Corp. in 2001, has a rated capacity of 150,000 bbl/d.

In mid-December, El Paso’s management said it would continue selling assets to reduce total debt to approximately $15 billion by year-end 2005 (see Daily GPI, Dec. 16). The Houston-based company, which wants to focus on natural gas pipelines, intends to achieve its debt reduction primarily through $3.3 billion to $3.9 billion of additional asset sales, the sale of restructured power contracts, the recovery of $500 million to $600 million in working capital, the conversion of the company’s 9% equity security units ($575 million) and free cash flow generation.

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